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Investing.com -- Galderma (SIX:GALD) shares jumped more than 7% on Thursday after the company posted first-quarter results that exceeded expectations, driven by strong sales of neuromodulators and a better-than-expected debut of its new dermatology treatment, Nemluvio.
The Swiss-based skincare and therapeutic company reported revenue of $1.129 billion, up 8.3% from the same period last year on a constant currency basis, and 2% above consensus estimates compiled by the company.
The biggest contributor to the sales beat was the Injectable Aesthetics segment, which recorded $547 million in revenue, up 10% at constant exchange rates and 7% higher than RBC Capital Markets’ estimate.
Jefferies reported the figure as 6% above consensus. Growth in this category was led by Neuromodulators, which generated $311 million, rising from $263 million a year ago.
Analysts at both RBC and Jefferies noted that performance was supported by continued market share gains and a phasing benefit that pulled forward some demand into the quarter.
Fillers and Biostimulators, at $236 million, declined slightly compared to the prior year, with RBC noting that double-digit international growth could not fully offset U.S. weakness.
In Dermatological Skincare, which includes Cetaphil and Alastin, sales totaled $370 million, marking a 5% increase over last year and coming in 1% ahead of consensus, according to Jefferies.
RBC attributed the performance to solid international demand, which continued to make up for softness in the U.S. market.
The Therapeutic Dermatology segment saw mixed results. Overall, excluding Nemluvio, the category declined to $173 million from $209 million a year earlier.
RBC pointed to the loss of exclusivity on Oracea as a key driver of the decline, which will not be fully reflected in year-over-year comparisons until the second quarter.
Jefferies separately reported the broader segment, including Nemluvio, at $212 million, which was 4% below consensus.
Nemluvio stood out in its first full quarter on the market, bringing in $39 million in revenue, above both RBC’s estimate of $30 million and Jefferies’ forecast of $36 million.
The drug is approved for prurigo nodularis and atopic dermatitis. RBC described the launch as ahead of expectations and noted strong early uptake across both indications.
Jefferies emphasized that the international rollout, including initial sales in Germany, contributed to the performance.
Galderma reiterated its full-year 2025 guidance of 10% to 12% constant currency sales growth and a 23% core EBITDA margin.
These targets imply full-year revenue between $4.78 billion and $4.87 billion and core EBITDA of $1.09 billion to $1.13 billion, depending on foreign exchange assumptions.
Jefferies maintained a forecast at the top end of both ranges, while RBC said the first-quarter results increase confidence in the company’s ability to meet or exceed these targets.
The company noted that the guidance now factors in the impact of newly imposed U.S. tariffs, which apply only to Fillers and Biostimulators, about 9% of total company revenue.
Both brokerages said the company appears well-positioned to absorb further pressure, citing the strong start to the year as a buffer against additional tariff exposure or softening consumer demand.
RBC expects Galderma to provide further detail on the Neuromodulator phasing effects and on the commercial rollout strategy for Nemluvio.
Both brokerages pointed to the pending U.S. approval process for QM-1114 (Relfydess) and its potential margin impact, given its favorable economics relative to Dysport.
Additional watch points include trends in Cetaphil sales in China and the U.S., and the implications of any future trade actions affecting pharmaceutical products.